AH-Vest sees turnaround in working capital management

All Joy Foods is the second largest producer of tomato sauce in South Africa. PHOTO: Getty Images

The company, also known as All Joy Foods Limited, saw revenue increase from 59.8 million rand for the six months ended 30 September 2012 to 62.6 million rand in 2013.

“The company has changed its year end to 30 June each year and accordingly the unaudited results for the six months ended 31 December 2013 are required to be compared to the results for the six months ended 30 September 2012, which were the last published half year results,” [DATA AHL:AH-Vest Limited] said.

“The board is pleased to report that the initiatives by the new management team taken surrounding working capital management and stock controls, together with continued support of AH-Vest's customers and stakeholders, has led to a turnaround in the management of working capital. The initiatives that resulted in an initial return to profitability have been negatively impacted by external and once off factors.”

The tomato sauce producer reported an operating loss of 5.4 million rand in 2013 from a profit of 3.3 million rand in 2012 and a loss before taxation of 5.9 million rand from a profit of 2.0 million rand.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) showed a loss of 4.4 million rand in 2013 from a profit of 5.8 million rand in 2012.

The company also reported a headline loss of 5.8 million rand in 2013 and a headline loss per share of 5.78 cents from a profit of 1.95 cents.

“AH-Vest has continued to operate the current Tarlton factory, to defend its shelf space, albeit at a higher cost. The new production facility being constructed at Eikenhof is expected to come on line before the end of 2014,” it said.

“The board of directors are confident that any losses incurred as a result of the current factory not producing the required volumes as well as high costs of production will start reversing in the second half of 2014, with increased volumes and economies of scale expected out of the new ‘state of the art’ plant.”